What does business insurance cover?
Business insurance is essential for protecting your company from various risks and ensuring its long-term stability. Here are the primary types of coverage that business insurance can provide:
1. General Liability Insurance
This is a fundamental coverage for any business. It protects against claims of bodily injury, property damage, and personal injury (like libel or slander) that occur as a result of your business operations.
2. Commercial Property Insurance
This coverage protects your business property, including buildings, equipment, and inventory, from risks such as fire, theft, and natural disasters. It ensures that you can recover and continue operations after a loss.
3. Business Interruption Insurance
Also known as business income insurance, this coverage helps replace lost income if your business is unable to operate due to a covered event, such as a fire or natural disaster. It can cover operating expenses, payroll, and other costs during the interruption.
4. Professional Liability Insurance
Also called errors and omissions (E&O) insurance, this coverage protects against claims of negligence, mistakes, or failure to perform professional services. It’s particularly important for service-based businesses.
5. Workers’ Compensation Insurance
This insurance provides benefits to employees who suffer work-related injuries or illnesses. It covers medical expenses, lost wages, and rehabilitation costs. Most states require businesses with employees to have this coverage.
6. Commercial Auto Insurance
If your business uses vehicles, this coverage is essential. It protects against liability and physical damage resulting from vehicle accidents. It can cover company-owned vehicles and, in some cases, personal vehicles used for business purposes.
7. Cyber Liability Insurance
With the increasing threat of cyberattacks, this coverage is becoming more important. It protects against data breaches, cyber extortion, and other cyber-related incidents. It can cover costs related to data recovery, legal fees, and notification expenses.
8. Product Liability Insurance
If your business manufactures or sells products, this coverage protects against claims of injury or damage caused by those products. It ensures that you are covered if a product defect leads to a lawsuit.
9. Employment Practices Liability Insurance (EPLI)
This coverage protects against claims related to employment practices, such as wrongful termination, discrimination, and harassment. It helps cover legal defense costs and settlements.
10. Directors and Officers (D&O) Insurance
This coverage protects the personal assets of your company’s directors and officers if they are sued for wrongful acts in their capacity as company leaders. It covers legal fees, settlements, and other related costs.
